M: Business 4th edition by O C Ferrell, Geoffrey A Hirt, Linda Ferrell Test Bank Link full download test bank: https://findtestbanks.com/download/m-business-4th-edition-by-ferrell-hirt-test-bank/ Link full download solution manual: https://findtestbanks.com/download/m-business-4th-edition-by-ferrell-hirt-solution-manual/ Chapter 02: Business Ethics and Social Responsibility True / False Questions Business ethics refers to principles and standards that determine acceptable conduct in business organizations True False Ethics and social responsibility mean the same thing True False All business decisions cannot be judged as right or wrong, ethical or unethical True False The most basic ethical concerns have been codified by laws and regulations that encourage businesses to conform to society's values and norms True False All a business has to to maintain ethical conduct is to follow the law True False Only for-profit organizations have to worry about ethics scandals and social responsibility issues True False 2-1 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical True False One of the principal causes of unethical behavior in organizations is overly aggressive financial or business objectives True False Since all ethical standards are universally accepted, they not depend on the culture in which a business operates True False 10 Employees spending their working hours on social networking or shopping sites is not considered as an area of misconduct observed in the workplace True False 11 Like sexual harassment, workplace bullying creates a hostile environment, but unlike sexual harassment, workplace bullying has little legal recourse at this time True False 12 Conflicts of interest are payments, gifts, or special favors intended to influence the outcome of a decision True False 13 Fairness and honesty are at the heart of business ethics and relate to the general values of decision makers True False 2-2 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 14 Ethical decisions in an organization are influenced by three key factors True False 15 Without a code of ethics or formal policy on ethics, employees are likely to base their decisions on how their peers and superiors behave True False 16 Professional codes of ethics are formalized rules and standards that describe what the company expects of its employees True False 17 Establishing and enforcing ethical standards and policies within business can help reduce unethical behavior by prescribing which activities are acceptable and which are not and by removing the opportunity to act unethically True False 18 There are three dimensions of social responsibility: economic, legal, and ethical True False 19 Voluntary responsibilities are optional activities that promote human welfare or goodwill True False 20 Corporate citizenship is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their owners True False 21 Most companies are introducing eco-friendly and marketing efforts to satisfy consumer demand and improve their images True False 2-3 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 22 The concept of social responsibility is universally accepted True False 23 A major social responsibility for business is providing equal opportunities for all employees True False 24 The right to safety requires that businesses provide a safe place for consumers to shop True False 25 Sustainability involves conducting activities in such a way as to provide for the long-term well-being of the natural environment, including all biological entities True False Multiple Choice Questions 26 The principles and standards that determine acceptable conduct in business organizations are referred to as: A social responsibility B business strategies C business ethics D business stances E corporate citizenship 2-4 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 27 Which of the following statements is true? A All actions deemed unethical by society are also illegal B The concerns of what is legal and ethical not change over time C The terms social responsibility and ethics should be used interchangeably D Companies can be both profitable and socially responsible E A business whose sole objective is to maximize profits is not likely to consider its social responsibility, and its activities will also be illegal 28 The term social refers to a business's obligation to maximize its positive impact and minimize its negative impact on society A citizenship B strategy C ethics D responsibility E rule 29 The Act criminalized securities fraud and toughened penalties for corporate fraud A Dodd-Frank B Federal Trade Commission C Foreign Corrupt Practices D Sarbanes-Oxley E Sherman Antitrust 2-5 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 30 Which of the following statements about business ethics is FALSE? A It concerns the impact of a business's activities on society B It refers to principles and standards that define acceptable behavior in business organizations C It relates to an individual's values and moral standards and the resulting business decisions he or she makes D What is ethical is determined by the public, government regulators, interest groups, competitors, and each individual's personal moral values E Studying it can help one recognize ethical issues and understand how others take unethical decisions 31 Studying business ethics will NOT necessarily: A help you recognize ethical issues B help you understand the importance of ethical decisions C inform you about the impact of the work group on ethical decisions D describe the ethical decision-making process E motivate individuals to perform acts of social responsibility 32 The Sarbanes-Oxley Act was passed to: A punish those who committed accounting fraud in the late 1990s B improve corporate profits C help laid-off employees get their jobs back D help investors recoup their losses E help restore confidence in corporate America 2-6 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 33 One of the most difficult things for a business to restore after an ethics scandal is: A regulations B ethics training programs C trust D codes of conduct E morale 34 Which of the following statements is FALSE about ethics? A Ethical issues are limited to for-profit organizations B Business ethics goes beyond legal issues C Ethical conduct builds trust among individuals and in business relationships D Ethical conflicts may evolve into legal disputes E Regardless of what an individual believes about a particular action, if society judges it to be unethical, that judgment directly affects the organization's ability to achieve its objectives 35 According to the National Business Ethics Survey, is the number one area of misconduct observed in the workplace A plagiarism B discrimination C abusive behavior D misuse of company time E stealing 2-7 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 36 If Laura, a manager, chooses to act so that she benefits financially at the expense of her firm, then she: A is bullying B is engaging in bribery C has a conflict of interest D is cheating E has broken the law 37 The fact that businesspeople are expected not to harm customers, clients, and competitors knowingly through deception, misrepresentation, coercion, or discrimination is part of: A business relationships B communications C conflict of interest D fairness and honesty E consumerism 38 A video gaming company was investigated for allegedly raising prices of its video game consoles during the Christmas shopping season and thereby manipulating the supply of games available at that time This ethical issue is primarily concerned with: A conflict of interest B communications C fairness and honesty D cost control E game rules 2-8 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 39 In the realm of business ethics, making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to: A conflict of interest B communications C product design D business relationships E financing 40 Managers use the of their position to influence employees' decisions and actions A responsibility B standards C principles D authority E acceptance 41 involves taking someone else's work and presenting it as your own A Conflict of interest B Bullying C Inspiration D Bribery E Plagiarism 42 The warning on cigarette packages about the health implications of smoking is an example of: A conflict of interest B fairness and honesty C communications D relationships within a business E environmental issues 2-9 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 43 Which of the following behavior is an example of ethical consideration within the purview business relationships? A Keeping company secrets B Communicating with customers C Whistleblowing D Obeying environmental laws E Donating to local charities 44 If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as engaging in accounting fraud or stealing a competitor's secrets, this would be an ethical issue related to: A plagiarism B business relationships C communications D fairness and honesty E conflicts of interest 45 If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in: A keeping a secret B career advancement C plagiarism D bullying E bribery 2-10 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 71 Water and soil pollution from oil and gas drilling is primarily related to A consumer relations B sustainability issues C community relations D employee relations E relations with stockholders One area of environmental concern is pollution of water and soil from business activities Sustainability refers to conducting activities in such a way as to provide for the long-term wellbeing of the natural environment, including all biological entities AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 72 The fact that environmental responsibility requires trade-offs means that it: A instigates trade relations B facilitates international competition C generates profits D imposes costs on both business and the public E imposes costs on public sector corporations Because environmental responsibility imposes costs on both business and the public, managers must coordinate environmental goals with other social and economic goals AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community 2-65 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Topic: The Nature of Social Responsibility 73 The most common way that businesses exercise community responsibility is through: A establishing codes of ethics B submission of environmental reports C obeying the law D recycling E contributions to charitable organizations The most common way that businesses demonstrate their community responsibility is through donations to local and national charitable organizations and causes AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 74 refers to attaching a positive environmental association on an unsuitable product, service, or practice A Greenwashing B Whitewashing C Environmentalism D Corporate citizenship E Community relations Environmentalists are concerned that some companies are merely greenwashing, or "creating a positive association with environmental issues for an unsuitable product, service, or practice." AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy 2-66 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 75 Many businesses, recognizing that employees lack basic work skills, are becoming more concerned about the quality of in the United States A job opportunities B education C personal ethics D management E community relations Businesses recognize that today's students are tomorrow's employees and customers, and have come to understand the value of a better educated workforce AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility Essay Questions 2-67 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 76 What is business ethics? Business ethics refers to principles and standards that determine acceptable behavior in business organizations The acceptability of behavior in business is determined by not only the organization but also stakeholders such as customers, competitors, government regulators, interest groups, and the public, as well as each individual's personal principles and values Within the context of an organization, ethics relates to an individual's or work group's decisions that society evaluates as right or wrong AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-01 Define business ethics and social responsibility and examine their importance Topic: Business Ethics and Social Responsibility 77 Choose an issue that has been prominently featured in the news and discuss the ethical implications of this issue Define any key terms that you use in your response Students' answers will vary, but they should aim to use and define key terms such as business ethics and social responsibility They may also want to define and discuss the term ethical issue Pay careful attention that students truly understand what business ethics is and that they are using the terms properly AACSB: Reflective Thinking Blooms: Apply Difficulty: Hard Learning Objective: 02-01 Define business ethics and social responsibility and examine their importance Topic: Business Ethics and Social Responsibility 2-68 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 78 Distinguish between the concepts of ethics and social responsibility with suitable examples for each Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility refers to a broader concept that concerns the impact of the entire business's activities on society Social responsibility refers to a business's obligation to maximize its positive impact and minimize its negative impact on the society Business ethics refers to principles and standards that determine acceptable behavior in business organizations Students' examples will vary, but they should reflect a clear understanding of the difference between these two key concepts For example, an organization's attempt to emphasize punctuality at work can be defined as business ethics while an organization's charitable donations to a non-governmental organization that caters to the needs of the differently abled is an example of social responsibility AACSB: Ethics Blooms: Understand Difficulty: Medium Learning Objective: 02-01 Define business ethics and social responsibility and examine their importance Topic: Business Ethics and Social Responsibility 79 What are some of the general ethical issues in business? General ethical issues include conflicts of interest that exist when people must choose whether to advance their own personal interests or those of others Fairness and honesty relate to the general values of decision makers Communication is another area in which ethical concerns may arise False and misleading advertising, as well as deceptive personal-selling tactics, anger consumers and can lead to the failure of a business Truthfulness about product safety and quality is also important to consumers The behavior of businesspersons toward customers, suppliers, and others in their workplaces may also generate ethical concerns Ethical behavior within a business involves keeping company secrets, meeting obligations and responsibilities, and avoiding undue pressure that may force others to act unethically AACSB: Ethics Blooms: Remember Difficulty: Easy 2-69 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 80 How you recognize an ethical issue in business? An ethical issue is an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical In business, such a choice often involves weighing monetary profit against what a person considers appropriate conduct The best way to judge the ethics of a decision is to look at a situation from a customer's or competitor's viewpoint AACSB: Ethics Blooms: Understand Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 81 Nathan, an employee at Shield Corp., bullies new employees in the workplace In this context, discuss the kind of misconduct that Nathan engages in In this scenario, Nathan engages in bullying which belongs to the abusive and intimidating category of behaviors in the workplace Bullying is a kind of misconduct that is often associated with a hostile workplace when a person or group is targeted and is threatened, harassed, belittled, verbally abused, or overly criticized In the context of the National Business Ethics Survey, bullying is a widespread problem in the United States, and can cause psychological damage that can result in health-endangering consequences to the target Other surveys indicate that approximately one in three adults have experienced bullying in the workplace, and one in seven workers witness bullying, most of them, from their supervisors or others in the management AACSB: Reflective Thinking Blooms: Apply Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 2-70 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 82 Naomi, an human resource executive with Enigma Corp., bought a pair of sunglasses online during her office hours According to this scenario, discuss the kind of misconduct that Naomi had engaged in and other kinds of misconduct that belong to the same category as per the National Business Ethics Survey In this scenario, Naomi's online shopping act is categorized as the misuse of company resources as per the National Business Ethics Survey Misuse of company resources has been identified by the Ethics Resource Center as a leading issue in observed misconduct in organizations Other kinds of misconduct that are similar to Naomi's act include downloading music, doing personal banking, surfing the Internet for entertainment purposes, or visiting Facebook Other issues include spending an excessive amount of time on personal e-mails, submitting personal expenses on company expense reports, or using the company copier for personal use While serious resource abuse can result in firing, some abuse can have legal repercussions AACSB: Reflective Thinking Blooms: Apply Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 83 Kenneth, an assistant pharmacist at Medusa Inc., stole money from the cash counter to purchase cocaine In this scenario, discuss the ethics that have been violated by Kenneth in his workplace According to this scenario, Kenneth has violated the ethics of fairness and honesty in his workplace Fairness and honesty are related to the general values of decision makers At the basic level, business persons are expected to obey the law and not to harm customers, employees, clients, or competitors knowingly through deception, misrepresentation, coercion, or discrimination In addition, these ethics are also associated with the manner in which employers and employees use the resources of the organization AACSB: Reflective Thinking Blooms: Apply Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 2-71 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 84 Discuss the ethical issues that can arise in the area of communications Communications is an area in which ethical concerns may arise False and misleading advertising, as well as deceptive personal-selling tactics, anger consumers and can lead to the failure of a business Truthfulness about product safety and quality are also important to consumers Some companies fail to provide enough information for consumers about differences or similarities between products Another important aspect of communications that may raise ethical concerns relates to product labeling Product labeling raises ethical questions when it threatens basic rights, such as freedom of speech and expression This issue is implicated in the controversy surrounding the movement to require warning labels on movies and videogames, rating their content, language, and appropriate audience age AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 2-72 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 85 Discuss the role of managers in maintaining and/or disrupting organizational ethics in business relationships Managers in an organization play a significant role in maintaining organizational ethics in business relationships It is the responsibility of managers to create a work environment that helps the organization achieve its objectives and fulfill its responsibilities Some of the ethical behaviors that managers can use to maintain organizational ethics include keeping company secrets, meeting obligations and responsibilities, and avoiding undue pressure on employees that may force others to act unethically However, some managers may disrupt organizational ethics when they enforce these responsibilities through organizational pressure on employees Organizational pressures may encourage a person to engage in activities that he or she might otherwise view as unethical, such as invading others' privacy or stealing a competitor's secrets The firm may provide only vague or lax supervision on ethical issues, creating the opportunity for misconduct Thus, managers who offer no ethical direction to employees create many opportunities for manipulation, dishonesty, and conflicts of interest AACSB: Ethics Blooms: Understand Difficulty: Medium Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 86 Discuss the notion of plagiarism in the business context Plagiarism refers to the act of taking someone else's work and presenting it as one's own without mentioning the source In the context of business, an ethical issue arises when an employee copies reports or takes the work or ideas of others and presents it as his or her own A manager attempting to take credit for a subordinate's ideas is engaging in another type of plagiarism AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-02 Detect some of the ethical issues that may arise in business Topic: The Role of Ethics in Business 2-73 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 87 Why is it increasingly common for organizations to have a code of ethics and compliance programs? The current trend is to move away from legally based ethical initiatives in organizations to culturalor integrity-based initiatives that make ethics a part of core organizational values Organizations recognize that effective business ethics programs are good for business performance Firms that develop higher levels of trust function more efficiently and effectively and avoid damaged company reputations and product images Organizational ethics initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty AACSB: Ethics Blooms: Understand Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior Topic: The Role of Ethics in Business 88 How can an organization improve ethical behavior? Understanding how people make ethical choices and what prompts them to engage in unethical behavior may reverse the current trend toward unethical behavior in business Establishing and enforcing ethical standards and policies within a business can reduce unethical behavior by describing which activities are acceptable and which are not and removing the opportunity to act unethically Codes of ethics, policies on ethics, and ethics training programs can help the business create a corporate culture that encourages ethical behavior AACSB: Ethics Blooms: Understand Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior Topic: The Role of Ethics in Business 2-74 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 89 Elaborate on the inclusion of the whistleblowing process as part of the ethics program One of the most important components of an ethics program is a means through which employees can report observed misconduct anonymously Whistleblowing occurs when an employee exposes an employer's wrongdoing to outsiders, such as the media or government regulatory agencies Unfortunately, whistleblowers are often treated negatively in organizations Nevertheless, more companies are establishing programs to encourage employees to report illegal or unethical practices internally so that they can take steps to remedy problems before they result in legal action or generate negative publicity In addition, the government also intends to discourage unethical practices by rewarding firms that encourage employees to report misconduct AACSB: Ethics Blooms: Remember Difficulty: Medium Learning Objective: 02-03 Specify how businesses can promote ethical behavior Topic: The Role of Ethics in Business 90 What are the four dimensions of social responsibility? Economic, legal, ethical, and voluntary concerns represent the four dimensions of social responsibility Earning profits is the foundation of these dimensions and complying with the law is the next step A business whose sole objective is to maximize profits is not likely to consider its social responsibility, although its activities will probably be legal Voluntary responsibilities are additional activities that may not be required, but they promote human welfare or goodwill AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-04 Explain the four dimensions of social responsibility Topic: The Nature of Social Responsibility 2-75 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 91 Discuss the social responsibility issue of businesses toward its employees A critical social responsibility for businesses is with respect to its employees Most organizations now recognize that the safety and satisfaction of their employees are critical ingredients in their success, and many strive to go beyond what is legally expected of them Healthy, satisfied employees supply more than just labor to their employers As a result, employers are beginning to realize the importance of obtaining input from even the lowest-level employees to help the company reach its objectives A major social responsibility for businesses is to provide equal opportunities for all employees regardless of their sex, age, race, religion, or nationality Women and minorities have been slighted in the past in terms of education, employment, and advancement opportunities; additionally, many of their needs have not been addressed by business However, at present, many companies are incorporating the changes that are required to meet the needs of its female employees Thus, more companies are providing day care facilities as part of their effort to recruit and advance women in the workforce In addition, companies are considering alternative scheduling such as flex-time and job sharing to accommodate employee concerns AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 2-76 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 92 Discuss the four rights specified in the consumer bill of rights proposed by John F Kennedy in 1962 The four rights specified in the consumer bill of rights proposed by John F Kennedy in 1962 include the right to safety, the right to be informed, the right to choose, and the right to be heard The right to safety implies that a business must not knowingly sell anything that could result in personal injury or harm to consumers In addition, it implies that businesses must provide a safe place for consumers to shop The right to be informed gives consumers the freedom to review complete information about a product before they buy it, including detailed information about ingredients, risks, and instructions for use that are to be printed on labels and packages The right to choose ensures that consumers have access to a variety of products and services at competitive prices The assurance of both satisfactory quality and service at a fair price is also a part of the consumer's right to choose The right to be heard assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy It also ensures the fair treatment of consumers who voice out their complaints about a purchased product AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 2-77 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 93 Discuss the measures that companies have taken to address environmental concerns and to become more sustainable Partly in response to federal legislation such as the National Environmental Policy Act of 1969 and partly due to consumer concerns, businesses are responding to environmental issues Many small and large companies including Walt Disney Company, Chevron, and Scott Paper, have created an executive position—a vice president of environmental affairs—to help them achieve their business goals in an environmentally responsible manner Some companies are finding that environmental consciousness can even save them money Many firms are trying to eliminate wasteful practices, the emission of pollutants, and/or the use of harmful chemicals Others are trying to improve their products and processes to be more environmentally friendly AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 94 Discuss the sustainability issues that managers must confront in dealing with social responsibility issues Managers today must consider the consequences of their actions on the environment as a part of their social responsibility Business practices that harm endangered wildlife and their habitats are another environmental issue Businesses must also be concerned with their contributions to air, water, and land pollution as a result of their operations In response to these concerns, many firms are trying to eliminate wasteful practices, the emission of pollutants, and/or the use of harmful chemicals from their manufacturing processes AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 2-78 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 95 Discuss the community relations issues that concern businesses Businesses must be aware of their responsibilities to the welfare of communities and societies in which they business Most commonly, businesses exercise community responsibility through donations to local and national charities Many companies are concerned with the quality of education in the United States, as students represent the future labor force for businesses Businesses also have begun to take steps to help the unemployed and hard-core unemployed AACSB: Ethics Blooms: Remember Difficulty: Easy Learning Objective: 02-05 Debate an organization's social responsibilities to owners; employees; consumers; the environment; and the community Topic: The Nature of Social Responsibility 2-79 Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education